Strategy Update (2024-04-17)
Staying in cash, nothing to do while Alpha Signals strategy remains on a red signal.
The major stock indexes ended Tuesday's trading session with mixed results. The Dow Jones Industrial Average managed to attain a small gain, while the other indexes closed slightly in the red. Despite a modest recovery from the day's lows, the overall market sentiment remained largely unchanged.
It's important to remember that corrective markets often experience convincing rallies followed by subsequent pullbacks and increased volatility. This can be challenging for investors who lack patience and discipline, tempting them to reenter the market prematurely. During times of elevated volatility, it's prudent to become more selective and risk-averse in your investment approach.
In the current market environment, it may be wise to adopt a spectator's perspective rather than a speculator's. The ability to remain patient and resisting the urge to take action is a key characteristic of successful investors, what is usually referred to as developing "sit out power". While the indexes are currently oversold and a bounce could occur at any moment, the overall risk remains high, and volatility is expected to persist in the near term. Continued caution is recommended.
Stay tuned for further Alpha Signals strategy updates.
